{"id":5722,"date":"2026-02-26T09:08:00","date_gmt":"2026-02-26T09:08:00","guid":{"rendered":"https:\/\/interfinance.tsue.uz\/?p=5722"},"modified":"2026-07-09T09:10:22","modified_gmt":"2026-07-09T09:10:22","slug":"the-concept-of-inflation-and-its-macroeconomic-determinants","status":"publish","type":"post","link":"https:\/\/interfinance.tsue.uz\/?p=5722","title":{"rendered":"THE CONCEPT OF INFLATION AND ITS MACROECONOMIC DETERMINANTS"},"content":{"rendered":"\n

Narkuziev Anvar Rustamovich<\/em><\/strong><\/p>\n\n\n\n

Associate professor of the department <\/em>\u201cT<\/em>heory of Economics<\/em>\u201d<\/em><\/p>\n\n\n\n

of <\/em>Tashkent State University of Economics<\/em><\/em><\/p>\n\n\n\n

Tashkent, Uzbekistan.<\/em><\/p>\n\n\n\n

E-mail: anvar.norquziyev824@gmail.com<\/a><\/em><\/p>\n\n\n\n

ORCID: 0009-0008-4211-8548<\/em>
<\/em><\/p>\n\n\n\n

Abstract: <\/em><\/strong>This article provides a comprehensive analysis of the theoretical essence of inflation and its major macroeconomic determinants using the economy of the Republic of Uzbekistan as a case study. The research examines the underlying causes of inflation and evaluates the influence of monetary, fiscal, and real-sector factors on inflationary processes based on modern economic theories and empirical approaches. Particular attention is devoted to the impact of money supply growth, central bank interest rate policy, inflation expectations, aggregate demand and aggregate supply imbalances, fiscal deficits, exchange rate fluctuations, and external economic shocks on the general price level. Furthermore, the study investigates the characteristics of inflation dynamics in Uzbekistan following the economic reforms initiated in 2017, including exchange rate liberalization and the gradual implementation of the inflation-targeting framework. The research highlights the importance of maintaining price stability through effective monetary policy, prudent fiscal management, and coordinated macroeconomic policies. The findings demonstrate that inflation is a multidimensional macroeconomic phenomenon that cannot be effectively controlled through monetary instruments alone. Sustainable inflation management requires a balanced combination of monetary and fiscal policies, expansion of productive capacity, improvement of market competition, enhancement of institutional quality, and strengthening of external economic stability. In addition, the article develops scientifically grounded conclusions and practical recommendations aimed at improving inflation forecasting, mitigating macroeconomic risks, and ensuring long-term price stability. The results may serve as a theoretical and practical basis for enhancing anti-inflation policies, strengthening macroeconomic equilibrium, improving public welfare, and supporting sustainable economic growth in Uzbekistan. The study also incorporates comparative analysis of international experience and contemporary economic theories to identify effective policy instruments for improving the inflation-targeting regime. Special emphasis is placed on increasing the efficiency of monetary transmission mechanisms, reinforcing policy coordination between fiscal and monetary authorities, and enhancing the resilience of the national economy to external shocks and global economic uncertainty, thereby contributing to long-term macroeconomic stability and sustainable development.<\/em><\/em><\/p>\n\n\n\n

Keywords:<\/em><\/strong> inflation, macroeconomic determinants, monetary policy, inflation targeting, aggregate demand and supply, economy of Uzbekistan.<\/em><\/p>\n\n\n\n